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H.R. 5803 (114th): Extra Credit for Working Students Act of 2016

The text of the bill below is as of Jul 14, 2016 (Introduced).


I

114th CONGRESS

2d Session

H. R. 5803

IN THE HOUSE OF REPRESENTATIVES

July 14, 2016

introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to allow a temporary election to accelerate the American Opportunity Tax Credit.

1.

Short title

This Act may be cited as the Extra Credit for Working Students Act of 2016.

2.

Accelerated American Opportunity tax credit

(a)

In general

Section 25A(i)(2) of the Internal Revenue Code of 1986 is amended to read as follows:

(2)

Special rule for number of years credit allowed

(A)

In general

Subparagraphs (A) and (C) of subsection (b)(2) shall be applied by substituting 4 for 2.

(B)

Election to accelerate credit

(i)

In general

In the case of an eligible student with respect to whom an election to have this section apply has not been made for any prior taxable year, a taxpayer may elect for the taxable year for subparagraph (A) not to apply with respect to such student and to apply paragraph (1) by substituting $4,000 for $2,000 in subparagraph (A) thereof and by substituting $4,000 but does not exceed $8,000 for $2,000 but does not exceed $4,000 in subparagraph (B) thereof.

(ii)

Election irrevocable

Once made, any such election shall be irrevocable and shall apply with respect to such student for all subsequent taxable years.

(iii)

Termination

No election may be first made under clause (i) for any taxable year beginning after December 31, 2022.

.

(b)

Study

(1)

In general

Not later than the date that is 1 year after the date of the enactment of this Act, and annually for the 5 years thereafter, the Secretary of the Treasury shall submit a report to Congress with respect to the election under section 25A(i)(2)(B) of the Internal Revenue Code of 1986 to accelerate the American Opportunity Tax Credit. Such report shall include details on the election rate of the option and the demographics of students so electing.

(2)

Report upon termination

In the last report required to be submitted under paragraph (1), the Secretary of the Treasury shall include an assessment of the effectiveness of such election at improving college completion times and the effectiveness of the American Opportunity Tax Credit, in general, at helping students to complete college on time.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2016.